The City and County of Denver has filed a second lawsuit in as many weeks against the Trump administration over its threats to withhold millions of dollars in federal grant funding.

The lawsuit was filed this week in the Federal District Court in the Western District of Washington at Seattle, adding Denver to a growing list of other counties, cities, and plaintiffs from California and Washington challenging the administration, according to a news release Friday.

The plaintiffs seek an order declaring the grant conditions at issue unlawful, void, and unenforceable and enjoining their imposition and enforcement.

The lawsuit comes on the heels of the city’s forthcoming $200 million budget deficit projected for 2026.

According to court documents, the plaintiffs argue that the Trump administration’s “unlawful attempts to repurpose federal grant programs” threaten more than $4 billion in already-awarded and soon-to-be awarded funds needed to support “critical” programs.

“I will continue fighting for Denverites to ensure they receive the services they pay for and are entitled to receive as taxpayers,” said Mayor Mike Johnston. “The Trump administration is willfully breaking the law and, in ignoring the separation of powers between Congress and the White House, violating the bedrock constitutional foundation on which our country was built.”

U.S. Department of Transportation Secretary Sean Duffy warned in April that federal funding recipients could lose taxpayer dollars if they do not align with the president’s stance on diversity, equity, and inclusion programs or assist in enforcing federal immigration policy.

“As recipients of such DOT funds, you have entered into legally enforceable agreements with the United States Government and are obligated to comply fully with all applicable Federal laws and regulations,” Duffy wrote. “These laws and regulations include the United States Constitution, Federal statutes, applicable rules, and public policy requirements, including, among others, those protecting free speech and religious liberty and those prohibiting discrimination and enforcing controls on illegal immigration. As Secretary of Transportation, I am responsible for ensuring recipients of DOT financial assistance are aware of and comply with all applicable legal obligations.” 

Duffy added that adherence to “legal obligations” is a prerequisite for federal financial assistance and that noncompliance “will jeopardize your continued receipt of Federal financial assistance from DOT and could lead to a loss of Federal funding from DOT.” 

Almost half a billion dollars in funding hangs in the balance between Denver’s Department of Transportation and Infrastructure (DOTI) and Denver International Airport.

A statement from Johnston’s office said DOTI is currently the recipient of a collective $300 million in federal funding and would not be able to support the city’s critical needs if it were to lose existing funding or the ability to apply for new grants.

Denver International Airport also relies on large sums of federal support through both entitlement and discretionary grants authorized by Congress and distributed by the Federal Aviation Administration.

For federal fiscal years 2022- 2024, the FAA issued approximately $310 million in grant funds to Denver International Airport.

Denver is expected to be eligible for an additional approximately $267 million in FAA grants for 2025-2028, which would support critical airport infrastructure and safety projects at the third busiest airport in the nation.

City officials argue the Trump Administration does not have the authority to make grants contingent on either DEI or immigration without action from Congress, which has not occurred.

This is Denver’s second lawsuit against the Trump Administration. Last week, the city joined Chicago and Pima County, Arizona, in seeking to recover $24 million in FEMA dollars allocated for sheltering and assisting migrants.

This is a developing story and will be updated as information becomes available.